Charter school pays $14.6M to Edge Property for location in Harlem

Global Community Charter School through the entity Fogccs 218 West 147th Street, LLC paid $14.6 million to Edge Property Group through the entity Edge 147, LLC for specialty building (I5) at 218 West 147th Street in Harlem, Manhattan.
The deal closed on August 18, 2022 and was recorded on September 7, 2022. The property has 22,922 square feet of built space and 11,519 square feet of additional air rights for a total buildable of 34,458 square feet according to PincusCo analysis of city data. The sale price per built square foot is $636 and the price per buildable square foot is $423 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on November 14, 2019, for $8.1 million. The signatory for Edge Property Group was Ari Shrizen. The signatory for Global Community Charter School was Kendra Brooks.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Global Community Charter School had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Edge Property Group had not purchased any other properties and had not sold any properties over the same time period.

The property

The 218 West 147th Street parcel has frontage of 50 feet and is 199 feet deep with a total lot size of 10,017 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.3 million.The most recent loan totaled $5 million and was provided by Local Initiatives Support Corporation on July 13, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Harlem, the bulk, or 44 percent of the 79.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Harlem has 2.5 times the average sales volume among other neighborhoods with $837.9 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, Harlem has 3.1 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Manhattan. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other specialty buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 12 of the 26 commercial properties representing 241,223 square feet of the 618,670 square feet. The largest owner is Robert Rosenberg, followed by Sharp Management and then L+M Development Partners.
There are five active new building construction projects totaling 62,135 square feet. The largest is a 14-unit, 16,001-square-foot R-2 building developed by Rayan Pedram with plans filed August 2, 2017 and it has not been permitted yet.The second largest is a 12-unit, 12,834-square-foot R-2 building developed by Rayan Pedram with plans filed June 1, 2017 and it has not been permitted yet.

The majority, or 54 percent of the 618,670 square feet of built space are walkup buildings, with elevator buildings next occupying 42 percent of the space.

The seller

The PincusCo database currently indicates that Edge Property Group owned at least nine commercial properties in New York City with 60,038 square feet and a city-determined market value of $17.2 million. (Market value is typically about 50% of actual value.) The portfolio has $34.3 million in debt, borrowed from Sterling National Bank. Within the portfolio, the bulk, or 64 percent of the 60,038 square feet of built space are hotel properties, with specialty properties next occupying 36 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Global Community Charter School owned at least one commercial property in New York City with 22,922 square feet and a city-determined market value of $2.3 million. (Market value is typically about 50% of actual value.) The portfolio has $5 million in debt, borrowed from Local Initiatives Support Corporation. The portfolio consists of at least a single specialty property. It is located in Manhattan.

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